Newstrike Brands Ltd NWKRF

RE:RE:RE:RE:RE:RE:Aurora won't let newstrike join Cannimed

[thorgb1]

GreenNewb wrote:

thorgb1 wrote:

KingMidasAu wrote: Your not following the story well or the reaction of the market yesterday when HIP looked to be going solo. We want to be left out, we don't want to be swallowed by ACB or CMED. They can marry each other and go. Pay us the $9.5 mil and we will go on our way. I don't know how many times this has to be posted or said. Ima get a copy + paste answer together so I do it quickly

King, there won't be a $9.5M payout. The reason they left the voting open until Tuesday. Certain insiders have not voted, and if they get a deal with ACB, they will vote no to the acquisition. I don't believe there is anything payable on shareholder's voting down the deal. That's the way I see it anyways. HIP would have to raise money pretty much right away and get going on their facility upgrades. I'd be surprised if they didn't have a couple of termsheets with them now, but I can't see them doing a raise over a buck a share. Good luck, I hope the best for HIP holders and management.

King is correct.  read the agreement here:
https://www.businesswire.com/news/home/20171117005834/en/CanniMed-Acquire-Cannabis-Newstrike-Resources-Ltd.-%E2%80%93

$9.5M payable from the party that chooses to terminate the agreement.
HIP voted YES.
If CMED votes NO they then need to pay HIP $9.5M + up to $600K in provision of expenses.

I truly hope you guys are right, but it's a non-solicitation clause, read the whole section. Not getting shareholder approval is not terminating in favour of a superior proposal. I would not be so certain that the $9.5M is payable at this point. Good luck to you.

The Arrangement Agreement provides that both parties are subject to nonsolicitation provisions and provides that the board of both companies may, under certain circumstances, terminate the Arrangement in favour of an unsolicited superior proposal, subject to the payment of a termination fee of C$5 million by Newstrike to CannMed or C$9.5 million by CanniMed to Newstrike, as the case may be. In addition, the Arrangement Agreement includes provisions providing for expense reimbursement of up to $600,000 from one party to the other in the event that the agreement is terminated under certain circumsta
Read more at https://www.stockhouse.com/news/press-releases/2017/11/17/cannimed-to-acquire-up-cannabis-inc-newstrike-resources-ltd--tsx-v-hip-to-creat#GgV8ahYqehJiC2z8.99